EXPATRIATES in Spain’s’ cravings for Indian sauces play a helping-hand in expected merger and acquisition increase in Britain. Around 20 per cent of British food and beverage companies plan to broker a merger or acquisition in the next 12 months, according to a report by Grant Thornton UK LLP.
While 46 per cent are considering expansion into new markets, and 66 per cent are considering new product launches. Reduced consumer spending, at least on premium goods, was said to be the biggest challenge by 32 per cent of the companies.
Grant Thornton’s Corporate Finance Director, Trefor Griffith, said that “food and beverage producers had to digest sharp increases in input prices in 2007 and 2008, leaving the survivors in good shape to bear the recession.”
“Most producers are already targeting growth, while 43 per cent of our respondents are still cutting costs.”
“It is remarkable that not a single respondent to the food sector survey highlighted competition from foreign firms as a significant challenge and less than half of them said the weakness of Sterling was bad for business.”
“Successful British exports include ready meals to France, Indian sauces to Spain, cheeses to Japan and breakfast cereals to China.”